Sonatrach, Eni Sign Major Gas Agreements for Algeria

Algeria’s state-owned oil company, Sonatrach and Italian oil and gas company, Eni signed a memorandum of understanding in a high-level meeting, setting the stage for future exploration by the two companies in Algeria. Sonatrach cited the new Hydrocarbons Law as setting the stage for this agreement.

The two companies have agreed to accelerate work on the Berkine Nord project. The aim is to export 6 million cubic meters per day by the end of 2020. The companies also signed three deals on gas marketing, for gas produced from the Ourhoud 2, Sif Fatima 2 and Zemlet El Arbi licenses. The agreements covered 1.5 billion cubic meters per year of gas production until 2049.

Sonatrach and Eni also agreed to setting the terms for gas supplies during the 2020-21 cycle. The two companies renewed their longstanding agreement in May 2019, to run until 2027 with the option for two more years.

During the meeting, Sonatrach also highlighted the possibility to develop more photovoltaic power projects in Algeria, following the example of the Bir Rebaa North work, in Block 403. Eni also cited Menzel Ledjmet Est as a site for a new photovoltaic system.